Analysts Say JCI Has the Potential to Be Sideways in Trading This Week

The worker took a screenshot showing the movement of shares on the Indonesia Stock Exchange, Jakarta, Tuesday (4/7/2023). BETWEEN PHOTOs/Hafidz Mubarak A/tom/am.mi

JAKARTA - The Composite Stock Price Index (IHSG) closed up 2.74 points or 0.04% to 6,849.17 at the end of trading on the Indonesian Stock Exchange (BEI), Friday, October 20.

Phintraco Sekuritas Equity Research Analyst Rio Febrian said that the JCI is expected to move sideways again in the 6,830-6,930 range this week.

Rio said that BI's decision to increase the benchmark interest rate by 25 bps to 6 percent on October 19 had not been able to support the Rupiah from external pressure.

Rio predicts that the JCI on Monday 23 October will move in the support area of ​​6,830 and resistance of 6,930.

"Large-capitalization bank shares, which are the main support for the JCI rebound in trading on Friday, October 20, are expected to experience pressure at the start of this week," he explained to VOI, Sunday, October 22.

On the other hand, the weakening of Wall Street indices continued on Friday (20/10). The weakening coincided with a continued rise in Treasury yields, with the 10-year US bond yield passing the psychological level of 5 percent for the first time since 2007.

Meanwhile, the condition of high-interest rates has had a negative impact on the majority of shares in the financial sector, especially banks in the US.

Apart from external sentiment, the ECB is expected to return to maintaining its benchmark interest rate policy at 4.5 percent and US economic growth is estimated to increase to 4.1 percent (qoq) in the third quarter of 2023 from 2.1 percent (yoy) in the second quarter of 2023.

Rio recommends stocks with the potential for further rebound on Monday 23 October including BBCA, MIKA, ELSA, BRIS, ICBP, MIDI, JSMR, AKRA, and MAPI.